The ratio of the second-order rate constants for reduction of dihydroxyacetone phosphate (DHAP) and of the neutral truncated substrate glycolaldehyde (GLY) by glycerol 3-phosphate dehydrogenase (NAD + , GPDH) saturated by NADH is (1.0×10 6 M −1 s −1 )/(8.7×10 −3 M −1 s −1 ) = 1.1×10 8 , which was used to calculate an intrinsic phosphate binding energy of ≤ −11.0 kcal/mol. Phosphite dianion binds very weakly to GPDH (K d > 0.1 M), but the bound dianion strongly activates GLY towards enzymecatalyzed reduction by NADH. Thus, the large intrinsic phosphite binding energy is expressed only at the transition state for the GPDH-catalyzed reaction. The ratio of rate constants for the phosphite-activated and the unactivated GPDH-catalyzed reduction of GLY by NADH is (4300 M −2 s −1 )/(8.7×10 −3 M −1 s −1 ) = 5×10 5 M −1 , which was used to calculate an intrinsic phosphite binding energy of −7.7 kcal/mol for the association of phosphite dianion with the transition state complex for the GPDH-catalyzed reduction of GLY. Phosphite dianion has now been shown to activate bound substrates for enzyme-catalyzed proton transfer, decarboxylation, hydride transfer and phosphoryl transfer reactions. Structural data provides strong evidence that enzymic activation by the binding of phosphite dianion occurs at a modular active site featuring: (1) a binding pocket complementary to the reactive substrate fragment, and which contains all the active site residues needed to catalyze the reaction of the substrate piece or of the whole substrate; (2) a phosphate/phosphite dianion binding pocket that is completed by the movement of flexible protein loop(s) to surround the nonreacting oxydianion. We propose that loop motion and associated protein conformational changes that accompany the binding of phosphite dianion and/or phosphodianion substrates leads to encapsulation of the substrate and/or its pieces in the protein interior, and to placement of the active site residues in positions where they provide optimal stabilization of the transition state for the catalyzed reaction.Enzymes are protein catalysts that effect much larger rate accelerations than those observed for small molecule catalysts. The larger rate accelerations for enzymes are a consequence of the greater binding affinities of enzymes for their reaction transition states (1). Enzyme catalysis is so efficient that the release of products would be intolerably slow if they were to bind with the same affinity as the transition state. For example, the ca. 30 kcal/mol transition state intrinsic binding energy estimated for the enzymatic decarboxylation of orotidine 5′-monophosphate (OMP) 1 catalyzed by orotidine 5′-monophosphate decarboxylase (OMPDC) (2) is even larger than the 20 kcal/mol binding energy associated with the effectively irreversible binding of biotin to avidin (3). Consequently, in order to avoid this free energy "trap", enzymes generally bind their substrates/products much more weakly than the reaction transition state.